A new guide is being published today by the National Association of Pension Funds (NAPF) to explain fiduciary management to pension fund trustees and the issues they need to consider if they are thinking of going down this route.
Fiduciary management is an approach to pensions management that involves appointing a professional investment organisation to implement the strategy adopted by the trustees.
The guide is the latest addition to the NAPF’s popular made simple series. It highlights some of the issues that trustees need to think about when considering whether fiduciary management could help them run their scheme. It also offers guidance on what needs to be done if trustees decide to adopt this approach.
Joanne Segars, Chief Executive, NAPF, said:
“Fiduciary management is a hot topic and trustees need to consider carefully whether this is the right option for their needs. Ultimately, trustees are responsible for scheme decisions and cannot side-step their responsibilities. By offering key information clearly and succinctly, this guide aims to help trustees consider whether fiduciary management can help them run their scheme.”
Fiduciary Management made simple guide is written and sponsored by Russell Investments. It is being launched at the NAPF Investment Conference in Edinburgh today.
Shamindra Perera, Head of Pension Solutions Group from Russell Investments, said:
“Current decision-making structures of many pension schemes are struggling to keep pace with the increasingly complex investment strategy and implementation. A good fiduciary manager should have the necessary expertise, resource and time to help pension funds deal with this complexity at every stage of their investment process, from advice on strategy design, through making day-to-day decisions in real-time to efficient trading and execution.”
Research has recently shown that the use of fiduciary management has increased by 30% since 2010, with over 200 pension schemes in the UK using it.
The guide (hard copy) costs £18 for NAPF members and £35 for non-members. It can be ordered online at www.napf.co.uk.
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